Proppants Market in North America

LONDON, March 10, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

Proppants Market in North America

North American demand to exceed 100 billion pounds

Proppants have been one of the most dynamic products in the North American market over the past decade, with sales increases outperforming most other industrial sectors. While growth is expected to slow somewhat from the heady early years, double digit gains are still expected, with overall demand reaching over 100 billion pounds in 2017, valued at more than $10 billion. Proppants are a relatively simple product, as most of the volume used is raw sand, but they have been critical to the expansion of oil and gas production in North America, setting off a chain of events that is revitalizing other North American manufacturing industries.

High oil & gas prices to sustain oilfield activity

Proppants have been used in the oil and gas industry for decades, but the advent of horizontal drilling technology combined with multistage hydraulic fracturing opened up significant new opportunities for high volume growth starting around the mid 2000s, especially as success in early applications such as the Barnett Shale in Texas was translated to even more productive formations across the region. These technological advances became more prominent at the same time oil and gas prices skyrocketed, providing further growth impetus to drilling and completion activity. Continued high oil prices and recovery in natural gas prices will sustain oilfield activity, with particularly good opportunities expected in a variety of states such as Texas, North Dakota and Pennsylvania, as well as in several up-and-coming plays in Western Canada. However, nearly every state with significant unconventional reserves is expected to benefit from these trends.

Raw sand to remain key proppant type

Raw sand will continue to account for a large share of proppant demand. While it generally cannot be used in wells with high closure pressures, raw sand performs suitably in most conditions. Due to their higher cost, ceramic proppants will be restricted to production areas that require stronger products. However, these production areas include some of the larger centers of upstream activity, including the Eagle Ford Shale in Texas and the Bakken Shale in North Dakota, Montana, and Canada. Coated sand proppants are expected to increase their market presence, as they offer cost advantages over ceramic proppant and performance advantages over raw sand.

Higher value markets to see gains as gas prices recover

Development of unconventional resources such as shale oil and gas has been the driving force behind growth in proppant demand over the past decade. While significant demand began with drilling in the Barnett play in Texas, more recent growth has been in liquid-rich formations such as Bakken and Eagle Ford. Demand in these and similar regions is being driven by high oil prices, which is spurring drilling activity, as well as by the deep and highly challenging geology of these wells, which require greater amounts of proppant to complete. In the future, gas prices are expected to recover and this should renew gains in important higher value proppant markets such as the Haynesville formation in Louisiana. Gains will also result from further development of fields in the Marcellus and Utica plays, with other large potential markets like the Monterey Shale in California probably a decade away.

Study coverage

This upcoming Freedonia industry study, Proppants in North America, is priced at $5100. It presents historical demand data for 2002, 2007 and 2012, plus forecasts for 2017 and 2022 by type. The study also details market environment factors, assesses company market share, and profiles industry players such as Fairmount Minerals, CARBO Ceramics, Mineração Curimbaba and FTS International Services.

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 6
Demographic Overview 10
Petroleum & Natural Gas Overview 12
Upstream Oil & Gas Activity 15
Petroleum Market Overview 18
Production & Consumption 19
United States 20
Canada 22
Pricing 23
Natural Gas Market Overview 25
Production 28
United States 28
Canada 29
Pricing 30
World Petroleum & Natural Gas Overview 31
World Petroleum & Natural Gas Reserves 32
World Petroleum Reserves 32
World Natural Gas Reserves 35
World Petroleum & Natural Gas Production 38
World Petroleum Production 38
World Natural Gas Production 40
Environmental & Regulatory Considerations 43
International Activity 46

III. TECHNOLOGY OVERVIEW 49

General 49
Well Drilling & Completion 50
Horizontal Drilling 50
Well Completion 52
Hydraulic Fracturing 53
Multistage Fracturing 56
Refracturing 57
Proppant Technology 58
Unconventional Resource Development 59
Shale 61
Tight Oil & Gas 62
Coalbed Methane 63

IV. PROPPANT SUPPLY & DEMAND 65

General 65
Capacity & Production 66
Trade 68
Demand by Type 70
Sand 73
Raw Sand 75
Coated Sand 82
Ceramic 85
Bauxite-Based 88
Clay-Based 89
Coated & Other Ceramics 90
Other Proppants 91
Proppant Pricing 93

V. REGIONAL PROPPANT MARKETS 96

General 96
United States 99
Southern Region 106
Texas 110
Louisiana 114
Arkansas 117
New Mexico 120
Other Southern Region 123
Midwestern Region 126
North Dakota 131
Oklahoma 135
Kansas 138
Ohio 141
Other Midwestern Region 144
Western Region 147
Colorado 151
Wyoming 154
Montana 157
Utah & Other 160
Eastern Region 164
Pennsylvania 168
West Virginia & Other 172
Canada 176
Alberta 181
Other Canada 184

VI. INDUSTRY STRUCTURE 188

General 188
Market Share 190
Raw Sand Proppant Market Share 192
Coated Sand Proppant Market Share 195
Ceramic Proppant Market Share 198
Industry Restructuring 201
Competitive Strategies 203
Cooperative Agreements 205
Transportation & Logistics 206
Research & Development 208
Company Profiles 210
Atlas Resin Proppants, see Badger Mining
Badger Mining Corporation 211
Baker Hughes Incorporated 212
Cadre Material Products LLC 213
Canfrac Sands Limited 214
Canyon Services Group Incorporated 215
CARBO Ceramics Incorporated 216
Carmeuse Group SA 220
Carmeuse Industrial Sands, see Pioneer Natural Resources
Erna Frac Sand LC 221
Fairmount Minerals Limited 222
flexFrac Proppant Sand Suppliers 224
FORES LLC 226
FTS International Services LLC 227
Halliburton Company 229
Hi-Crush Partners LP 230
Imerys SA 232
Messina Incorporated 234
Mineração Curimbaba Limitada 235
Momentive Performance Materials Holdings LLC 236
Oxane Materials Incorporated 239
Pattison Sand Company LLC 240
Pioneer Natural Resources Company 241
Preferred Sands LLC 242
Premier Silica, see Pioneer Natural Resources
PyraMax Ceramics, see Imerys
Saint-Gobain 244
Santrol, see Fairmount Minerals
SCR-Sibelco NV 246
Sierra Frac Sand LLC 248
Superior Silica Sands LLC 249
Texas Silica LLC 250
Unimin, see SCR-Sibelco
US Silica Holdings Incorporated 251
Other Companies Mentioned in Study 253

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators by Country 7
2 Population & Households 12
3 Oil & Gas Production & Consumption 15
4 Upstream Oil & Gas Activity Indicators 18
5 Crude Oil & Liquids Supply & Demand 19
6 Natural Gas Supply & Demand 27
7 World Petroleum Proved Reserves by Country, 2012 35
8 World Natural Gas Proved Reserves by Country, 2012 37
9 World Crude Oil Field Production by Region 39
10 World Dry Natural Gas Production 42

SECTION IV -- PROPPANT SUPPLY & DEMAND

1 North American Proppant Trade 70
2 North American Proppant Demand by Type 73
3 North American Sand Proppant Demand by Type 75
4 North American Raw Sand Proppant Demand by Country 78
5 North American Coated Sand Proppant Demand by Country 85
6 North American Ceramic Proppant Demand by Country & Type 87
7 North American Other Proppant Demand 93
8 Selected Proppant Pricing 95

SECTION V -- REGIONAL PROPPANT MARKETS

1 North American Proppant Demand by Country 97
2 United States: Key Indicators for Proppant Demand 102
3 United States: Proppant Demand by Type & Region 105
4 Southern Region: Key Indicators for Proppant Demand 108
5 Southern Region: Proppant Demand by Type & State 110
6 Texas: Proppant Demand by Type 113
7 Louisiana: Proppant Demand by Type 116
8 Arkansas: Proppant Demand by Type 119
9 New Mexico: Proppant Demand by Type 122
10 Other Southern Region: Proppant Demand by Type 125
11 Midwestern Region: Key Indicators for Proppant Demand 129
12 Midwestern Region: Proppant Demand by Type & State 131
13 North Dakota: Proppant Demand by Type 134
14 Oklahoma: Proppant Demand by Type 137
15 Kansas: Proppant Demand 140
16 Ohio: Proppant Demand 143
17 Other Midwestern Region: Proppant Demand 146
18 Western Region: Key Indicators for Proppant Demand 149
19 Western Region: Proppant Demand by Type & State 151
20 Colorado: Proppant Demand by Type 153
21 Wyoming: Proppant Demand by Type 156
22 Montana: Proppant Demand by Type 159
23 Utah & Other Western Region: Proppant Demand by Type 163
24 Eastern Region: Key Indicators for Proppant Demand 166
25 Eastern Region: Proppant Demand by Type & State 168
26 Pennsylvania: Proppant Demand by Type 171
27 West Virginia & Other Eastern Region: Proppant Demand by Type
175
28 Canada: Key Indicators for Proppant Demand 179
29 Canada: Proppant Demand by Type 181
30 Alberta: Proppant Demand by Type 183
31 Other Canada: Proppant Demand by Type 186

SECTION VI -- INDUSTRY STRUCTURE

1 North American Proppant Sales by Company, 2012 189
2 North American Proppant Sales by Company, 2012 190
3 Selected Acquisitions & Divestitures 203
4 Selected Cooperative Agreements 206

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Crude Oil Spot Prices, 2002-2012 25
2 Natural Gas Spot Prices, 2002-2012 31
3 World Crude Oil Field Production by Region, 2012 39
4 World Dry Natural Gas Production, 2012 43

SECTION III -- TECHNOLOGY OVERVIEW

1 US Natural Gas Production by Category 61

SECTION IV -- PROPPANT SUPPLY & DEMAND

1 Raw Frac Sand Demand by Type, 2012 79

SECTION V -- REGIONAL PROPPANT MARKETS

1 North American Proppant Demand Growth, 2012-2017 98
2 United States: Proppant Demand by Region, 2012 106
3 Texas: Proppant Demand, 2002-2012 114
4 Louisiana: Proppant Demand, 2002-2012 117
5 Arkansas: Proppant Demand, 2002-2012 120
6 New Mexico: Proppant Demand, 2002-2012 123
7 Other Southern Region: Proppant Demand, 2002-2012 126
8 North Dakota: Proppant Demand, 2002-2012 135
9 Oklahoma: Proppant Demand, 2002-2012 138
10 Kansas: Proppant Demand, 2002-2012 141
11 Ohio: Proppant Demand, 2002-2012 144
12 Other Midwestern Region: Proppant Demand, 2002-2012 147
13 Colorado: Proppant Demand, 2002-2012 154
14 Wyoming: Proppant Demand, 2002-2012 157
15 Montana: Proppant Demand, 2002-2012 160
16 Utah & Other Western Region: Proppant Demand,
2002-2012 164
17 Pennsylvania: Proppant Demand, 2002-2012 172
18 West Virginia & Other Eastern Region: Proppant Demand,
2002-2012 176
19 Alberta: Proppant Demand, 2002-2012 184
20 Other Canada: Proppant Demand, 2002-2012 187

SECTION VI -- INDUSTRY STRUCTURE

1 North American Proppant Market Share by Company, 2012 191
2 North American Raw Sand Proppant Market Share
by Company, 2012 192
3 North American Coated Sand Proppant Market Share
by Company, 2012 196
4 North American Ceramic Proppant Market Share
by Company, 2012 199

Read the full report:
Proppants Market in North America
http://www.reportbuyer.com/energy_utilities/oil_gas/proppants_market_north_america.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Oil_and_Gas_energy

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]  
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

SOURCE ReportBuyer